Blog Post

Saddled With Debt, Midway Games Files For Chapter 11 Reorg

Trying to get out from under roughly $150 million worth of debt, Midway Games filed for Chapter 11 bankruptcy this morning. The filing only covers the Chicago-based publisher’s U.S. operations — not its holdings in Europe. New CEO Matt Booty said the move would “relieve the immediate pressure from our creditors” and give the Mortal Kombat publisher more time to get its books in order and explore other options.

Staci adds: Midway is based in Chicago but incorporated in Delaware, which is where the case is filed. From the initial list of top unsecured creditors, the top content creditor appears to be the National Basketball Association — owed $17.3 million for licensing/royalties — with Warner Bros. Interactive Entertainment at $6.6 million and Epic Games nearly $2 million. National Amusements is owed more than $20 million. Full filing embedded after the jump.